In this ISU, you will demonstrate your understanding of the critical points of the accounting cycle and production of key financial statements. You will create and complete your own accounting exercise for a service-based business. The business will begin as of June 1, 2020 and will have a year-end of December 31, 2020. This may be a professional business such as a law firm or consulting firm, or a service business such as a housepainter, dog walker, hairstylist, landscaper, etc. Your business may not sell products - just services. You will have an initial (opening entry) as of June 1, 2020 of $65,000 in cash. Requirement One Provide an overview of your newly opened business. Discuss your revenue sources and your main business activities (2 paragraphs). Requirement Two Create a Chart of Accounts for your business. There must be at least 15 accounts, can be a few more but you must include current assets; long-term assets; current liabilities; long term liabilities; capital account; drawings account; revenue account(s) and at least 4 expense accounts. Include HST Payable and HST Recoverable, Depreciation and Accumulated depreciation. Requirement Three Create and journalize at least 15 relevant financial transactions. All must be completed and include source document references, explanations, dollar values, etc. Source documents must be presented- For example: an invoice, a receipt or a cheque, a bank advice etc. At least 2 must include sales and purchase taxes, where HST Payable and HST Recoverable are utilized At least 2 must be compound entries that do not include sales taxes. * You must calculate and record year-end adjusting entries for depreciation on one long-term asset-Use the Declining Balance method with the government recommended rate *You should consider that the business is a start-up. Consider what you would need to purchase, or finance, to achieve your business' goals and the required financial structure noted in Requirement Two. Requirement Four Create and journalize 3 adjusting entries and all closing entries for year end. Adjusting entries must include physical count adjustments, prepaid expenses, and late arriving invoices. Requirement Five Post all Journal entries to Ledger Accounts Requirement Six Produce end-of-year Trial Balance Financial Statements Business Home Renovation Shoe Cleaning Services Barbershop Phone Repairs Car Service Repairs Window Repairs Daycare